5 Reasons Why the All or Nothing Model Of Crowdfunding Is The Best
Posted on 18 June, 2015 by Team Wishberry
You take crowdfunding seriouslyIt’s not even funny how notorious some campaigners are for launching a crowdfunding campaign only to go underground and not do anything about it. However, throw in a deadline- an ultimatum- and, boom, shit just got real in here. Because of the fact that if you fall short of even one penny, you stand to lose everything you raised so far, you’re more motivated than ever to make this happen. You come in with a plan, you stick to it till the very end and you show tremendous dedication towards your campaign. Which is exactly how it should be, as opposed to acting like a fly by night campaigner and making a fool of yourself.
The crowd takes your campaign seriouslySince you are working so seriously and you have so much to lose, the crowd has an easier time deciding whether they should put their money on you. Moreover, All or Nothing helps make sure a campaigner goes all out to raise funds.
Campaigns following the All or Nothing principle are just easier to trust, and have higher credibility from the beginning to the end.
Higher transparencyAll or Nothing means if you make one wrong move, you can actually lose every penny that you've worked for. You have to win the crowd's heart, because every contribution is important. Therefore, one wrong move- anything that paints you or your campaign as something sketchy- and that's it. So you have no option but to be absolutely transparent about where the money is going to be used. Plus, it really makes it possible and easier for those who don’t even know you to back you.
You maintain a higher product qualityIn this model, there’s no concept of settling for the second best or making the best of whatever you raise. All or Nothing forces you to be extremely clear and sure about your target amount. So, you raise exactly the amount you need to make the best version of the product.
Community buildingIn order to ensure a successful project, you have to keep the traction high throughout the campaign. The buzz just cannot stop. Now to make sure the buzz is constantly there, you’ll be in regular contact with all your backers and potential backers. You’ll share insights and information with them, you’ll have regular conversations with them and so on.
Also, because you stand to lose everything if failed, your backers will help you spread the word too.
What does this do? This helps build a relationship between you and the backers, in turn fostering the whole spirit of community. It's challenging, yes. But the All or Nothing model in itself serves a lot of benefits to your campaign- the most important of them being establishing trust among your backers.